Page 57 - ADVANCED TAXATION - Day 1 Slides

Solution

57

 Mr Strempel would have initially paid VAT of R413 (R3

363 × 14/114) when purchasing the giraffe figure from

the curio store. The curio store, being a VAT vendor,

needs to charge the output tax of R413 and pay it over

to SARS. Upon leaving the country with the wooden

giraffe, Mr Strempel can have the VAT of R413

refunded to him. SARS needs to refund this amount on

Mr Strempel’s departure with the item purchased in

South Africa, as it is regarded as being an indirect

export in terms of the Export Incentive Scheme.